Global markets soared yesterday after a “bare bones agreement” was made to
avert America’s “fiscal cliff”.

Economists warned that any rally could be short-lived as the deal delays key
decisions by only two months and is likely to trigger a fresh round of
political and economic uncertainty in the United States.

Nevertheless, President Obama welcomed congressional approval for a Bill that
will impose tax rises for wealthy Americans but will delay decisions over
spending.

Plans for $109 billion of automatic spending cuts to military and domestic
programmes were pushed back until March. These discussions will take place
along with another